Daily Morning Note – 18 Sep 2020


Asian stocks looked set for modest gains on Friday amid a dollar retreat and after U.S. equities pared the worst of their losses. Treasuries edged higher. Futures in Japan, Hong Kong and Australia pointed higher. The S&P 500 dropped for a second day, though it found some support after bouncing off its 50-day moving average. Technology shares were the biggest decliners, with Apple, Facebook and Microsoft weighing on the Nasdaq Composite. Data showed the number of Americans applying for jobless benefits resumed its decline. Crude oil climbed above $40 a barrel.

Elsewhere, natural gas prices tumbled the most in almost two years after a bigger than expected increase in stockpiles revived concerns that the glut of the fuel will increase. Gilts climbed after the Bank of England policymakers said they were exploring negative rates.


Environmental protection solutions provider Sunpower Group said on Thursday that it has secured a manufacturing and services tender worth more than 150 million yuan (S$30.1 million) from energy and chemicals group Sinopec, a repeat customer. Under the tender, Sunpower will manufacture and supply two types of liquefied natural gas (LNG) vaporisers – Submerged Combustion Vaporisers and seawater Intermediate Fluid Vaporisers – for Sinopec’s large LNG receiving terminal in Shandong province.

Malaysia’s Top Glove Corporation said it planned to list in Hong Kong within six to nine months after “supernormal” demand for disposable gloves during the Covid-19 pandemic saw its quarterly profit skyrocket to a company record. Executive chairman Lim Wee Chai said the world’s top disposable medical glove maker, which is already listed in Malaysia and Singapore, was in talks with bankers about the Hong Kong deal.

Property developer SLB Development said on Thursday that it has entered into a sale and purchase agreement with Thye Hong Manufacturing for the acquisition of Thye Hong Centre at 2 Leng Kee Road, a freehold six-storey industrial building for S$112.5 million, exclusive of goods and services tax. SLB Development had on Aug 25 made an expression of interest to purchase the development.

Catalist-listed Figtree Holdings’ wholly-owned subsidiary Figtree Real Estate will be acquiring a 27.5 per cent interest in DC Alliance for A$2.75 million (about S$2.74 million) in cash, making this its first strategic investment in a data centre. DC Alliance is a Singapore incorporated company that, through its wholly-owned subsidiary DCA 1, holds a 100 per cent interest in Pier DC, a Western Australian company that designs, builds and operates Tier-certified data centres in Australia and the Asia-Pacific region.

Shares in Wilmar International rallied on Thursday morning, after the mainboard-listed agribusiness on Wednesday said its Chinese unit, Yihai Kerry Arawana (YKA), has received final registration approval from the China Securities Regulatory Commission for its initial public offering (IPO). The listing of YKA on the Shenzhen Stock Exchange’s ChiNext Board is expected to take place by mid-October, Wilmar announced.

Eagle Hospitality Trust (EHT) has served “pay/perform or quit” statutory notices to its master lessees in US states which have those requirements. It means each master lessee is being made to pay the outstanding rent and/or perform the defaulted non-rent obligations within a deadline of between three and 15 days, according to the applicable state law. Otherwise, it will have to “peacefully vacate” and surrender the property, according to EHT’s bourse filing on Wednesday night.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR


Rex International Holdings Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

Rex International (SGX: 5WH) bearish downtrend was set when the Rex fails to clear above the psychological resistance of $0.200. Despite a prediction of a rebound after a corrective regular flat was formed based on our report dated 3rd August, the strong bearish momentum breaks the 161.8% extension of (a)-(b) and therefore, the (c) wave has become a new bearish impulse wave. Recent technical also indicate a possible renewed selling going forward

ComfortDelGro Corp Ltd

Analyst: Chua Wei Ren

Recommended Action: Technical SELL

ComfortDelGro (SGX: C52) bearish downtrend has come to a halt after the market came into a corrective expanding wedge in March 2020. Recent technical indicate that there is further downside of ComfortDelGro.

Ascendas Real Estate Investment Trust

Analyst: Chua Wei Ren

Recommended Action: Technical BUY

Ascendas REIT (SGX: A17U) strong upside met with a slight downside correction in mid-August and recent technical indicate that the stock will be making a bullish.

>> Read more technical reports


Webinar Of The Week

Market Outlook: (PSR) Sembcorp Industries (Initiation), SG REIT Monthly, Asia Technical Outlook, SG Weekly

Date: 14 September 2020

For more on Market Outlook

Updates summarised in 3 minutes

Phillip Research in 3 minutes: #25 – Prime US REIT; Initiation

For more videos on Phillip in 3 Mins

Read the research report(s), available through the link(s) above, for complete information including important disclosures Important Information

The information contained in this email and/or its attachment(s) is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. The information or opinions provided in this email do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the e investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or investing in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein is suitable for you. PhillipCapital and any of its members will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached to this email. The information and/or materials provided 揳s is?without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.
Confidentiality Note
This e-mail and its attachment(s) may contain privileged or confidential information, which is intended only for the use of the recipient(s) named above. If you have received this message in error, please notify the sender immediately and delete all copies of it. If you are not the intended recipient, you must not read, use, copy, store, disseminate and/or disclose to any person this email and any of its attachment(s). PhillipCapital and its members will not accept legal responsibility for the contents of this message. Thank you for your cooperation.


Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com